The 48% APR cap, explained
What the Hong Kong money-lender APR ceiling means, how a flat rate differs from APR, and why the HK$20,000 example is not your repayment.
48% is a ceiling, not a quote
The Money Lenders Ordinance says the APR on a money-lender loan must not exceed 48%. That is a maximum. China Prestige Capital will not, and cannot, lend above it. The ceiling does not mean we charge close to 48%, and it does not mean you will be approved.
Your rate is assessed and confirmed in writing. Product, amount, term, and risk can change the rate. A spoken monthly figure, before that writing, is a discussion, not a contract term.
A flat rate is not the APR
A monthly flat rate is a simple ratio on the original principal. APR expresses the time value of interest and other amounts that must be included, using the statutory method. It is usually higher than twelve times the flat rate. Compare loans by APR and by the total you repay, not by the flat rate alone.
The site example is HK$20,000, monthly flat rate 0.052%, 12 months, no handling fee. Monthly interest is HK$10.4. Interest over the year is HK$124.8. Total repayment is HK$20,124.8. APR is 1.15%. Those figures are an illustration, not a price list and not your repayment.
Fees change the real cost
If the loan document lists fees, those fees may have to be included in the APR. An arrangement described as interest-free, but paid for by a large fee up front, can still be expensive. Before you sign, ask for principal, rate, every fee, term, monthly repayment, and how early repayment is treated.
The example says there is no handling fee. That statement belongs to the example. If your own document lists a fee, the document governs. Do not copy “no fee” onto a second mortgage or a larger enquiry.
A loan above the cap is not enforceable
A money-lending transaction with an APR above 48% is generally not enforceable in Hong Kong. An APR above 36% may also be presumed extortionate. That protection is not a reason to look for an unlicensed or higher-cost lender. Unlicensed lending carries criminal risk and sits outside the licensing complaints framework.
Refuse anyone who offers money “without an APR” or asks you to sign a blank document. Consider reporting them. Enquiring with a licensed lender at least lets you check a number and a hotline.
Decide from the total you repay
Look at the total over the whole term, and at the monthly payment as a share of income. A low rate on a very long term can still add up. Do not commit to spending you have not calculated while the rate is still unset.
Keep the written repayment schedule. If it differs from an earlier conversation, the writing prevails. Ask about the difference before you sign. The hotline is 3622 2934.
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Before you read
Warning: you have to repay your loans. Don’t pay any intermediaries.
China Prestige Capital is a licensed Hong Kong money lender, licence 1848/2025. Enquiry and complaint hotline: 3622 2934. We are not a bank and not an SFC-licensed corporation. We do not take deposits or provide securities or asset-management services.
Under the Money Lenders Ordinance, the APR must not exceed 48%. The HK$20,000 example on this site is illustrative only: monthly flat rate 0.052%, APR 1.15%, 12 months, no handling fee, monthly interest HK$10.4, total repayment HK$20,124.8. Your rate, amount, and term are assessed individually and confirmed in writing.
Sending an enquiry, or reading an article, is not an approval. A second mortgage or owner loan is secured on property. Default may lead to enforcement and sale. Obtain your own legal advice before signing any security document.